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New Short Term Rental Regulations in Toronto

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New Short Term Rental Regulations in Toronto

Sylvia Schmidt

Enthusiasm and a zest for life are two of the driving forces behind my real estate practice – and my life...

Enthusiasm and a zest for life are two of the driving forces behind my real estate practice – and my life...

Nov 24 4 minutes read

Renting your property in Toronto, has just become a little bit more complicated.  If you currently have a short term rental property or are planning on investing in one in the future, read up as Toronto has introduced new rules for AirBnB and other short-term rental platforms. 

Short-term rental operators are people renting their homes or rooms on a short-term basis, for a period of less than 28 consecutive days. Short-term rental operators must now register with the City in order to operate in Toronto. To continue short-term renting, current operators must be registered by December 31, 2020 and start collecting the Municipal Accommodation Tax from January 1, 2021. Future operators will be able to register on an ongoing basis, but must do so before short-term renting their homes.


Know the regulations.


1. You are only allowed to short-term rent your principal residence.

  • This is the residence where you live and the address you use for bills, identification, taxes and insurance.
  • You can only have one principal residence at a time, therefore you cannot legally run more than one short-term rental.


2. You can be a homeowner or a renter in any housing type, for example house, apartment or condominium, etc.

  • You should ensure that you are allowed, by your condominium or landlord, to short-term rent your residence.


3. You can rent up to three bedrooms in your principal residence for an unlimited number of nights per year or the entire home for a maximum of 180 nights per year.


4. Your home must be in a residential area in the city.

  • If you are a Bed and Breakfast (B&B) operator, you can continue to operate under existing zoning permissions for “tourist homes”.


5. You can host a short-term rental in a secondary suite or laneway suite, as long as the suite is your principal residence.

  • A secondary suite is separate living accommodation with its own kitchen and washroom, located within a larger house (for example, a basement apartment).
  • A laneway suite is a self-contained residential unit located on the same lot as a larger house, and generally located in the rear yard.  A laneway suite must be next to a public laneway.
  • If you reside in the main portion of house, you are not permitted to separately short-term rent the secondary suite or laneway suite.


Registration Fee.

You are required to pay a registration fee of $50 every year, which is subject to an annual increase. This is a non-refundable registration fee and is valid for one year from the time your registration has been approved. Fees can be paid using only a valid credit card.

You are not eligible to register a short-term rental if your registration was denied or revoked in the last 12 months.


How to Register.

Registration and payment for your short-term rental need to be completed online at the City of Toronto registration website.  

Register Your Short Term Rental

Penalties for Operators.

If you do not comply with the regulations there are hefty fines. If convicted, you may be liable to pay a fine of up to $100,000.

You may also be liable to pay a special fine that a court deems is greater than any revenue that you may be gaining from your business; as well as a fine of up to $10,000 for each day the offence continues. You may also be fined with a load of other offences.

These new regulations may impact the rental market. There is some speculation that many investment properties will be sold off now that they are not allowed to continue to operate as short term rentals. This may free up inventory and lower prices for long term tenants. 


Looking to Sell Your Investment Property? 

Some people are choosing to unload their investment property now that these new regulations are taking effect. If you're considering doing the same, let's chat about how I can help.

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